1. Defvas Project In Partnership with TEGoVA and the IRRV EUROPEAN VALUATION STANDARD – 2 VALUATION BASIS OTHER THAN MARKET VALUE

2. Defvas Project In Partnership with TEGoVA and the IRRV INTRODUCTION AND SCOPE Circumstances where an alternative basis of valuation may be required Understanding the distinction between market value and the alternative basis The impact of an alternative valuation basis –Construction of the valuation –Production of the valuation

3. Defvas Project In Partnership with TEGoVA and the IRRV BASIS OF VALUE The definition of the Basis of Valuation Distinguishing the basis from the methods or techniques used The importance of transparency when applying the basis of value Revealing the assumptions The basis of valuation in context

4. Defvas Project In Partnership with TEGoVA and the IRRV FAIR VALUE The definition of Fair Value Recognised as a permissible basis of valuation Special Value – A special purchaser – Going concern value – Synergistic value or marriage value

5. Defvas Project In Partnership with TEGoVA and the IRRV INVESTMENT VALUE OR WORTH Definition of investment value or worth The individual buyer and the bid Not expected to be consistent with market value –Such valuations are: –To be determine the value for a specific individual, and –Do not assume an exchange of property

6. Defvas Project In Partnership with TEGoVA and the IRRV MORTGAGE LENDING VALUE Definition of mortgage lending value The Capital Requirements Directive The Basel II Accord The concept of Mortgage Value Lending (MVL) The value-at-risk approach The exposure risk

7. Defvas Project In Partnership with TEGoVA and the IRRV INSURABLE VALUE The definition of Insurable Value Mitigating the risk The relationship with the insurance contract The implication of the valuation and the unrecoverable loss

8. Defvas Project In Partnership with TEGoVA and the IRRV ALTERNATIVE USE VALUE Definition of the Alternative Use Valuation Considering alternative uses of the building which may not involve continuing the present business The value would not reflect any costs of ceasing the business This basis may be relevant where a depreciated replacement cost valuation has taken place

9. Defvas Project In Partnership with TEGoVA and the IRRV FORCED SALE VALUE Definition of the Forced Sale value The need for this valuation may arise where the seller is under compulsion to sell Identification of the constraints Can only be the basis once the relevant constraints are identified The value will reflect the specific circumstances

10. Defvas Project In Partnership with TEGoVA and the IRRV DEPRECIATED REPLACEMENT COST Definition of the Depreciated Replacement Cost Also known as the Contractors Method Used for properties with non conforming, unusual or distinctive attributes A valuation of last resort Choice of depreciation rate is a valuation judgement